Legacy Trader Indicator

The Legacy Trader Indicator was created by a professional Forex trader named Mark Brookshire in the year 2011. It is designed to help traders in identifying market trends.

What is the Legacy Trader Indicator?

The Legacy Trader Indicator is a popular technical analysis tool in Forex trading. It is a comprehensive indicator combining various trend, momentum, and volatility indicators to provide a comprehensive market picture.

Legacy Trader Indicator Overview

In the world of trading, understanding the differences between trend and momentum can be crucial in determining your trading strategy.

Trend refers to the general direction that price is moving in over a period of time. This can be determined by looking at the price action and observing if it is making higher highs and lows in an uptrend or lower highs and lows in a downtrend. A trend can last for a varying length of time and can be influenced by various factors such as economic data, political events, and market sentiment.

Momentum, on the other hand, refers to the strength and velocity of a price movement. This is often measured using volume and distance traveled within a few bars. Momentum traders look for assets that are moving in a strong direction with high volume, as this can indicate a potential continuation of the move. Momentum can change quickly, which means that assets that were previously showing strong momentum can lose it just as quickly.

Both trend and momentum are used in various trading strategies. Trend-following strategies focus on riding the trend in the direction of the general price movement. This often involves waiting for a clear trend to develop and then entering a trade in the direction of the trend. Momentum strategies, on the other hand, focus on finding assets that are showing strong momentum and then entering a trade in the direction of the momentum.

The Legacy Trader Forex Trading Strategy is a combination of both trend and momentum. This strategy uses two indicators to identify the general trend and momentum in the market, and then enters a trade in the direction of the trend when momentum is confirmed. By combining the two, traders aim to increase their chances of success by taking trades in the direction of both the trend and momentum.

Legacy Trader Indicator - MT4
Legacy Trader Indicator – MT4

Key Features of the Legacy Trader Indicator

  • The Legacy Trader Indicator is a multi-timeframe indicator that helps traders to identify trends in different timeframes.
  • It helps traders to see the market trend, momentum, and volatility in a single indicator.
  • The indicator is easy to understand and can be used by both novice and experienced traders.

Legacy Trader Indicator Set-up

The Legacy Trader Forex Trading Strategy is a combination of momentum and trend-following techniques. The goal of this strategy is to enter trades based on both the strength of price movement and the direction of the trend.

The CCI indicator is used to identify the momentum and trend of the market. A breach above 100 on the CCI line indicates bullish momentum, while a fall below -100 suggests bearish momentum. However, for a trend setup to be confirmed, the CCI line must also show support or resistance near the midline (zero) and price must remain positive for an uptrend or negative for a downtrend.

Once momentum and trend have been established, the strategy seeks out short-term trend reversals that are in line with the bigger picture trend. The Legacy Trader indicator is used to execute trades, with the line changing color and direction indicating the main trend. Trades are taken as soon as this occurs.

Legacy Trader Strategy

Buy Signal

  • The CCI line should have recently surpassed 100.
  • The CCI line should remain positive.
  • Place a long order as soon as the Legacy Trader indicator moves beneath price and turns aqua.
Legacy Trader Indicator Buy Signal
Legacy Trader Indicator Buy Signal

Sell Signal

  • The CCI line should have recently fallen below -100.
  • The CCI line should continue to stay below zero.
  • Execute a sell trade when the Legacy Trader indicator moves above the market price and changes to magenta color.
Legacy Trader Indicator Sell Signal
Legacy Trader Indicator Sell Signal

Legacy Trader Indicator Pros & Cons

Pros

  • The indicator provides a comprehensive picture of the market trend, momentum, and volatility.
  • The indicator’s multi-timeframe capability helps traders see the market trend in different timeframes.
  • The indicator is easy to understand and use.

Cons

  • The indicator may generate false signals in ranging markets.
  • The indicator is based on technical analysis and does not take into account fundamental factors.
  • Market noise may affect the indicator, which can lead to incorrect signals.

Conclusion

The Legacy Trader Indicator is a useful tool for Forex traders who want to get a better understanding of the market trend, momentum, and volatility. It provides a comprehensive picture of the market and can help traders make better-informed trading decisions.

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